Cash-strapped telecom operator Vodafone Idea has decided to insource some managed services following the termination of the contract with Tata Communications Transformation Services (TCTS).
The move, prompted by non-payment of dues, particularly affects the operation and maintenance of Vodafone Idea’s fiber assets, previously handled by TCTS. Despite the transition, Vodafone Idea assures its customers that services will remain unaffected.
TCTS terminated the contract after Vodafone Idea failed to clear dues amounting to Rs 221.19 crore, an increase from Rs 171.5 crore as of March the previous year. In response to this development, Vodafone Idea spokesperson stated that they have mutually agreed to a planned transition, aligning with the model the company followed before outsourcing these services to TCTS.
The telecom industry has been closely watching Vodafone Idea’s financial challenges, and Bharti Enterprise chairperson Sunil Mittal emphasized the need for substantial investment and capital strengthening.
Despite recent setbacks, including the inability to secure funding for 5G network technologies, Vodafone Idea remains determined to navigate its financial complexities.